Salary > 100K and salary sacrifice pension

andr3s

Hi - I'm in a lucky position this year.

My gross salary this year, due to bonus and RSAs vesting, will be > 100K (~ 130K). This is likely to be a one off, and I will revert back to ~80K from next year. 

I also have a 2 year old child, and income > 100K reduces the benefits I have access to.

My employer has a salary sacrifice pension scheme - can I just push as much as legally possible from my salary into my pension through salary sacrifice till the end of the financial year? Is there anything else I need to do to optimise tax?

As my bonus is coming, could I push 100% of my salary into my pension for the bonus month, or would that be in breach on minimum wage legislation?

Thanks for any suggestions!

Grumpy_chap

How much of the £130k is the bonus?
Does the employer offer "bonus sacrifice"?

andr3s

Grumpy_chap said:

How much of the £130k is the bonus?
Does the employer offer "bonus sacrifice"?

Hi - my pension is taken with salary sacrifice, and my gross salary before the bonus/RSAs would be under 100K. It's the bonus/RSAs that will take me over 100K. I have asked today if I can do some sort of bonus sacrifice, but I haven't got the answer yet.

saucer

You might get more response on the pension board 

Albermarle

andr3s said:

Hi - I'm in a lucky position this year.

My gross salary this year, due to bonus and RSAs vesting, will be > 100K (~ 130K). This is likely to be a one off, and I will revert back to ~80K from next year. 

I also have a 2 year old child, and income > 100K reduces the benefits I have access to.

My employer has a salary sacrifice pension scheme - can I just push as much as legally possible from my salary into my pension through salary sacrifice till the end of the financial year? Is there anything else I need to do to optimise tax?

As my bonus is coming, could I push 100% of my salary into my pension for the bonus month, or would that be in breach on minimum wage legislation?

Thanks for any suggestions!

You can not sal sac below the minimum wage and I think this will be calculated on a monthly basis.

Separately there is an annual allowance limit of £60K that you can add to a pension in a tax year. This includes all contributions from employee, employer and tax relief.
If you have not added £40K ( the amount changed recently) you can bring unused allowance forward.

As suggested probably best to repost on the pensions board.
Pensions, annuities & retirement planning — MoneySavingExpert Forum

andr3s

Albermarle said:

andr3s said:

Hi - I'm in a lucky position this year.

My gross salary this year, due to bonus and RSAs vesting, will be > 100K (~ 130K). This is likely to be a one off, and I will revert back to ~80K from next year. 

I also have a 2 year old child, and income > 100K reduces the benefits I have access to.

My employer has a salary sacrifice pension scheme - can I just push as much as legally possible from my salary into my pension through salary sacrifice till the end of the financial year? Is there anything else I need to do to optimise tax?

As my bonus is coming, could I push 100% of my salary into my pension for the bonus month, or would that be in breach on minimum wage legislation?

Thanks for any suggestions!

You can not sal sac below the minimum wage and I think this will be calculated on a monthly basis.

Separately there is an annual allowance limit of £60K that you can add to a pension in a tax year. This includes all contributions from employee, employer and tax relief.
If you have not added £40K ( the amount changed recently) you can bring unused allowance forward.

As suggested probably best to repost on the pensions board.
Pensions, annuities & retirement planning — MoneySavingExpert Forum

I would probably have an unused allowance from the previous years if needed (but that's very unlikely to be the case). Thanks for the reminder, I didn't think about that.